Taking ownership of Brisbane Markets

At the beginning of 2000, it was clear to the wholesalers that it was beyond time to persuade the state government to sell the Rocklea site. “In the end, we had to make an ultimatum and we were very serious about it. We went to the government and told them we had land, wholesalers and money behind us,” Mr Joseph said. Brismark continued to pressure the state government to relinquish ownership of the markets and, in May 2001, the Beattie state government acknowledged it didn’t have a role in owning and managing a fruit and vegetable market, and announced its intention to sell the Brisbane Markets by open public tender. While the state government’s announcement to sell the markets caused significant uncertainty within the industry, Brismark quickly started a coordinated process to make a bid for the site. Landacq was identified as an appropriate legal entity to be a bidding vehicle for the sale process and the company was fully restructured, a new constitution put in place and management agreement drawn up such that while Brismark would fund the bid, if it was successful, Brismark would be reimbursed for the expenditure incurred and be paid capital raising and success fees. A negotiation team was appointed, being then Brismark president (and current BML Chair), Anthony Kelly, Brismark Directors Mr Joseph and Peter Tighe, and the new Brismark CEO (and current BML Managing Director), Andrew Young. “When the opportunity to purchase the market site arose, it was an absolute milestone of my life, it is one of the few things I will never forget,” Mr Lower said. “We had a meeting with consultants who were experienced in these types of undertakings, and they talked us through the process of getting shareholders, raising capital and building a successful bid. “I remember going home afterwards and thinking this is beyond my wildest dreams. It goes to show that if you can find the right people, they can figure out a way to do anything,” Mr Lower said. The four-stage tender process began in December 2001, with Landacq competing against numerous other interested parties, including multinational construction companies, superannuation funds and infrastructure funds. Ultimately, Landacq’s $73.85 million bid for the 72-hectare site was successful, with the sale settling on 30 September 2002. The Landacq consortium offered an attractive price, minimal risk exposure for the Queensland government, and a strong vision for the future development, management and operation of the markets. “We had the most experience, and that’s what the state government wanted. They needed Brisbane Markets to be operated correctly for the benefit of both the growers and the consumers of this state,” Mr Joseph said. The successful bid was underpinned by the strong support given by the Brismark Board, Brismark’s Bid Committee and the wholesaling sector. It was also strengthened by the success of Landacq’s capital raising, the support given by the Westpac Bank, and considerable investment by two wholesalers, Carter & Spencer Group and RW Pascoe, to effectively underwrite the capital raising and satisfy bank requirements. Mr Kelly said at the time “the Brismark Executive performed extremely well under the pressure created by the sale process, with the ultimate outcome being an outstanding success. The benefits which flow to Brismark will ensure that Brismark has a long position of strength within the industry both financially and as a key industry organisation.”

The Central Trading Area in 2002 (left) and in 2022 (right).